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5 expert tips to calculate the 'retirement number' that will let you leave the workforce for good

1. Using the 25x rule

Andrew Latham, managing editor at SuperMoney, said his favorite method for calculating retirement money is the 25x rule. The calculation is quite simple — all you have to do is multiply the annual income you think you will need in retirement by 25.

"So, if you estimate you will need $80,000 per year when you retire, aim to save $2 million," he said.

He added that he also supports the 33x rule for savers who want to be on the conservative side, since it assumes a 3% withdrawal rate. With the 33x rule and a target income of $80,000 per year, an early retiree would want to save $2.64 million before they leave their job.

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